The Real Bill is credit provided for clearing, without lending or borrowing. It is different than a bond. To review the bond, in Part III we showed how it arises out of the need to save. People must plan for retirement and senescence during their working years. Even if there is no way to lend [...]

In this Part IV, we consider another kind of credit: the Real Bill. We must acknowledge that this topic is controversial because of the belief that Real Bills are inflationary. This author proposes that inflation should not be defined as an increase in the money supply per se, but of counterfeit credit (Inflation: An Expansion [...]

There would be no central bank with its “experts” to dictate the rate of interest and no “lender of last resort”. There would be no Securities Act, no deposit insurance, no armies of banking regulators, and definitely no bailouts or “too big to fail”. The government would have little role in the monetary system, save [...]

The essential was that people had a right to own and trade gold coins. They had the right to deposit them in a bank, if the bank offered attractive terms (especially the payment of interest). Banks had a right to take deposits, to buy assets, and to pay interest. Banks had a right to issue [...]

The choice of the word “unadulterated” is not accidental. There were many different kinds of gold standard, including what we now call the Classical Gold Standard, the Gold Bullion Standard, and the Gold Exchange Standard. Each contained flaws; each was adulterated. For example, in the Coinage Act of 1792, the government forced the price of [...]